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-(Table: Demand and Total Cost) Use Table: Demand and Total Cost.Lenoia runs a natural monopoly firm producing electricity for a small mountain village.The table shows Lenoia's demand and total cost of producing electricity.The price effect of increasing production from 3 megawatts to 4 megawatts is:
Total Variable Costs
The sum of all costs that vary with the level of output, such as materials and labor, excluding fixed costs like rent or salaries.
Total Costs
The sum of all expenses a business incurs to produce or sell its products or services, including fixed and variable costs.
Marginal Costs
The cost associated with producing one extra unit of a commodity, emphasizing the importance of scale in production.
Average Total Costs
The total cost of production divided by the number of units produced, representing the cost per unit.
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